Spot Runner Sees Opportunity in Google’s Foray Into TV Ads
4/6/07 – Google this week announced its first foray into TV advertising through a deal with EchoStar, which runs the DishNetwork satellite service, in an attempt to further extend its advertising platform offline. On first blush, this may be seen as a threat to Los Angeles-based Spot Runner, which is perhaps the most prominent company already selling local television advertising online. But for its part, Spot Runner appears to see the new Google service as validation more than anything else.
“Google’s interest in this space is very positive for Spot Runner,” said Rosabel Tao, vice president of corporate communications for Spot Runner. “It just reinforces what we’ve always believed—that TV advertising is a powerful marketing channel that should be made available to greater numbers of businesses.”
The company also helps businesses produce commercials, and says it offers advertising in 95 percent of local markets in the U.S.
According to its announcement, Google will have access to a portion of DISH Network’s advertising inventory that spans across all channels and dayparts, for an “automated system for buying, selling, delivering and measuring television ads on EchoStar DISH Network’s 125 national satellite programming networks.” The company has already launched print and radio advertising tests.
Despite Google’s dominant brand and ridiculously strong financial position, Spot Runner does have a head start in understanding the most effective approaches to the market. Tao cites this as Spot Runner’s most significant strength versus Google.
“In contrast (to Google), Spot Runner has been business for three years and its services are widely available. In addition, Google doesn’t address one of the largest barriers for business that are interested in getting on TV—obtaining a high-quality, affordable commercial,” said Tao. “Spot Runner has a vast library of professionally produced ads for hundreds of business categories, all available for as little as $499. One of Spot Runner’s key benefits is that it provides businesses with an end-to-end solution, including high-quality and affordable commercial production, media planning and media buying services.”
According to various reports, Google has run into problems in its tests of print and radio advertising and its attempts to bring an “AdWords” automated model to traditional media.
Tao cites Spot Runner’s differentiated approach as another advantage over the Internet giant.
“It appears that Google is trying to approach TV the way they are approaching Internet advertising. But the models that work on the Internet are not necessarily the models that are going to prevail in more traditional television advertising,” said Tao. “In addition, it seems like Google wants to commoditize inventory. Spot Runner believes inventory is owned and controlled by the media companies and that they need to be properly empowered to make decisions about who buys their media and how it’s priced. That’s why we take a very collaborative approach in working with media companies – in fact, CBS is one of our investors.”
Spot Runner was launched in 2006 by entrepreneurs Nick Grouf and David Waxman.
Spot Runner - www.spotrunner.com
